Industry & Economy
-
Textiles
Cotton mills seek lower customs duty on man-made fibres
Our Bureau
New Delhi
,
Dec. 21
THE Indian Cotton Mills Federation (ICMF) has asked the Government to lower the customs duty on all man-made fibres and their intermediaries from the prevailing 20 per cent to at least 10 per cent, in light of the "near monopoly" situation in man-made fibre production in the country.
In its pre-budget memorandum for 2005-06, ICMF has that since imports are unviable at the current duty levels, the textile industry runs the risk of becoming uncompetitive in the international markets.
"More than 95 per cent of man-made fibre consumption in the country is from domestic production and only a handful of producers account for most of the domestic production. However, customs duty at the peak rate of 20 per cent is applicable on man-made fibres and on intermediary products," the ICMF Chairman, Mr V.K. Ladia, said in the memorandum submitted to the Finance Minister.
The Federation has said that there is a near monopoly situation in man-made fibre production in the country and consequently the domestic producers are presently charging the landed prices of imports plus import duty.
"Since imports are unviable at current import duty, the textile industry runs the risk of becoming uncompetitive in the international markets," Mr Ladia said in the memorandum.
ICMF has also made a case for halving the mandatory excise duty on man-made fibres to 8 per cent for those opting for the Cenvat route. The Federation has also called for halving the excise duty on textile machinery from 16 per cent.
More Stories on :
Textiles |
Excise and Customs |
Industry Associations
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
